European shares rebounded on Tuesday after hitting a six-month low in the previous session, reflecting a recovery across global and Asian markets, partly offset by corporate earnings reports.
The pan-European STOXX 600 index rose 0.8%, after the continent-wide index on Monday recorded its sharpest three-day decline since June 2022, closing below the key 500-point level for a second day.
Japan's Nikkei index rose 10% after markets saw their biggest one-day drop since 1987 in the previous session, yesterday.
The travel sub-index was the biggest gainer among European sectors, led by a 2.1% gain in InterContinental Hotels Group after the Holiday Inn owner reported higher second-quarter figures.
Among individual stock moves, Italy's Monte dei Paschi di Siena jumped 8.2% after raising its earnings forecast.
Adecco shares rose about 5% even as the Swiss staffing firm reported continued bleak hiring trends in the third quarter.
The euro was steady at $1.09535, below a seven-month high of $1.1009 touched on Monday.
The pound sterling was last traded at $1.27765.
The US dollar suffered losses on Tuesday and the yen retreated after a strong rise in the previous session, with the possibility of a significant cut in US interest rates by the Federal Reserve.
The Japanese yen fell 0.89% on Tuesday to 145.48 yen per dollar, after rising for five straight sessions and hitting a 7-month high of 141.675 on Monday.
The yen also fell against the Australian dollar, the euro and the British pound.
The Reserve Bank of Australia kept interest rates steady on Tuesday as expected, while stressing that it is not ruling out anything to control inflation.
The Australian dollar fell to a more than eight-month low of $0.63485 on Monday, taking its losses since the start of the year to more than 4% on the year.
